Most CIOs are very familiar with cost-cutting within the IT landscape. However, the evolution to digital business means CIOs and technology functions now need to look beyond this as a simple expense reduction activity.
They need to shift their focus to longer-term cost-optimisation. A cost optimisation strategy that optimises the business value of their information technology.
With that in mind, here are 5 cost optimisation strategies that you may not have explored to help transform your business and help you on your journey of cost optimisation.
The old adage, “focus on what you excel at and outsource the rest”, rings true in this arena. Many businesses still try to do too much themselves. Business Process Outsourcing (BPO) can be a challenge. However, sourcing, negotiating and leveraging your BPO partners is a rapid way to significantly optimise costs, build flexibility and improve processes.
Business processes are the fabric and ecosystem which runs any successful organisation. Many of these processes present opportunities to become more efficient through reviewing and digitalisation which can lead to significant gains in business performance and reduction in costs.
Achieving higher levels of appreciation for business processes remains a challenge for many CIOs. Change, however, is inevitable and necessary when you are consistently reviewing your business processes. Establishing process management as a part of the company’s fabric will help to ensure that change becomes a continuous normal process and is more easily adopted by everyone involved
While some companies adapt to change quickly and have a culture where change is simply part of their success pathway, many others remain behind with their head in the sand.
Sticking with outdated systems and processes because ‘this is what we’ve always done’ is not an approach that will lead to success in today’s fast-moving technology landscape. It also leads to a fixed mindset and culture that is slow to adapt as it grows.
Todays CIOs need to work collaboratively with business leaders to identify and remove these issues, which are typically in the form of reworks or delays due to issues further up the line. Giving them the space to focus on lean improvement efforts.
Data carries a cost. This cost comes in the form of actual cash spent on storing, processing and managing data. Holding data also carries a risk in terms of legislation around data security.
Business value creation is a by-product of good data management.
How does Customer service help with cost optimisation? This may seem unrelated, but it is not. The digitalisation of business has supported rapid growth for many organisations. It has facilitated the breaking down of barriers to doing business.
Think about how you could better serve your customers and what benefits it would bring to all parties.
Want to know more? Intercor works with large-scale clients who wish to transform and optimise their businesses for growth and value creation. A combination of our cost optimisation services and tech-enabled business design solutions yields outstanding results. Book a call with us to talk through the opportunities.
Why not download the full article and read up on the 7 Levers for Rapid Business Growth and Increased Business Valuation article?
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